The Indian markets witnessed a gap down opening on the back of weak global cues. The BSE Sensex is currently at 15,843, down 222 points and the Nifty opened at 4,747, down 66 points.
In US, stocks ended in the red on Tuesday, amid worries about US economic growth. But losses were trimmed after the International Monetary Fund unveiled an enhanced lending program to help countries struggling with short-term liquidity problems from Europe's debt crisis. The Dow Jones industrial average ended down 54 points, or 0.5%. The S&P 500 slipped 5 points, or 0.4%, and the Nasdaq composite lost 2 points, or 0.1% Earlier, all three indexes were down about 1%.
The turnaround came after the IMF announced that it is revamping its lending facility to better serve "crisis-bystanders," the countries with strong economic policies and fundamentals that are struggling with urgent financing needs during periods of "heightened economic or market stress."
Asian shares drifted lower on Wednesday after a downward revision of US growth data raised new concerns about the faltering global economy. MSCI's broadest index of Asia Pacific shares outside Japan fell 0.3%. Tokyo markets were closed for a holiday. The Nikkei index is down marginally while the Shanghai COmposite and Hang Seng indices have shed 1-2% each.
Back in India, markets are likely to remain volatile for the day as traders roll over positions in futures and options segment on Thursday. On Tuesday, markets ended with marginal gains, albeit off the day's high, as buying continued in metal and IT shares. BSE Sensex touched a high of 16,213 after gaining steadily for most part of the day. The Sensex edged up 119 points to 16,065. Nifty ended up 34 points at 4,812.
The Nifty is expected to get support at 4,720 levels.
All the sectoral indices are in the red with IT and metal shares leading the decline. Both indices have dropped 1.5% each. Bankex, Auto and Oil & Gas idnices are also showing weakness this morning.
Infosys and Reliance are the biggest draggers among Sensex stocks, contributing 57 points to the fall. Bharti Airtel has slipped 3.5%, followed by Tata Motors and Jaiprakash Associates - down 2-3% each.
ONGC has dropped 0.8% at Rs 249 following reports that the has withdrawn the papers it filed for the follow-on public offer. SKS Microfinance has touched a new low of Rs 105 in opening trades on reports that its founder and chairman may step down. The stock is now down 2% at Rs 108.
The overall market breadth is negative as 913 stocks have declined against 489 advancing ones, on the BSE.
